Hugh Grant has accepted a "substantial sum" from Rupert Murdoch's British tabloid publisher over phone hacking by the News of the World, the British actor's lawyer said.

The Four Weddings and a Funeral star will donate the damages to the Hacked Off campaign against press intrusion.

"My aim has always been to ensure that cash is redistributed from Mr Murdoch to help those his company has harassed," Grant said in a statement through the campaign group.

His lawyer Mark Thomson said the damages would be transferred to Hacked Off as soon Grant, 52, receives the payment, with a statement made in open court in the New Year.

"Hugh Grant has today settled his claims for damages and other legal remedies arising out of the unlawful activities of News of the World journalists and others over a number of years," Mr Thomson said in a statement.

"News Group Newspapers (NGN) have agreed to pay him a substantial sum by way of damages. He has instructed us to donate all of his damages plus an additional payment from him to the Hacked Off campaign for a free and accountable media."

Grant, one of the most high-profile celebrity victims of phone-hacking by the News of the World, has become a vocal campaigner for press reforms since Mr Murdoch was forced to close down the 168-year-old tabloid weekly over the scandal in 2011.

Revelations that the newspaper's staff accessed the voicemail messages of a murdered schoolgirl, as well as dozens of celebrities, politicians and sport stars, had prompted a wave of public disgust.

The scandal sparked a judicial inquiry into press ethics and three police investigations.

NGN has since paid compensation to dozens of people, including actors Jude Law and Sienna Miller, footballer Ashley Cole and former deputy prime minister John Prescott.

A Hacked Off spokesman said: "At the outset of his legal action, Hugh Grant announced that any damages would be going to Hacked Off to be spent on providing support for victims of phone hacking and other press abuse, especially those who don't have access to expensive lawyers.

"Mr Grant is one of a growing list of donors who are helping to ensure that the campaign is well-funded for the battle ahead, and can continue to represent people who would otherwise be without a voice in the debate."

Hacked Off is campaigning for the recommendations of judge Brian Leveson's inquiry into press ethics to be implemented in full, including a new independent regulator with statutory backing.